Nebraska will receive $5.2M in Wells Fargo settlement

Wells Fargo Bank will pay over $575 million to resolve claims that the bank violated state consumer protection law, Attorney General Doug Peterson announced Friday. 

Nebraska’s share of the settlement is $5,210,423.

Wells Fargo identified more than 3.5 million accounts where customers accounts were opened, had funds transferred, credit card applications filed, and debit cards issued without the customers’ knowledge or consent, Peterson said in a news release. 

The bank has also identified 528,000 online bill pay enrollments nationwide that may have resulted from improper sales practices at the bank.

In addition, Wells Fargo improperly submitted more than 6,500 renters insurance and/or simplified term life insurance policy applications and payments from customer accounts without the customers’ knowledge or consent.

“It is very disappointing that a national bank would engage in such conduct at the cost of their loyal customers,” Peterson said. “Fortunately, both federal and state authorities have interceded to remedy Wells Fargo’s misconduct.   

Wells Fargo has previously entered consent orders with federal authorities – including the Office of the Comptroller of the Currency (OCC) and the Consumer Financial Protection Bureau (CFPB) – related to its alleged conduct. 

Wells Fargo has committed to or already provided restitution to consumers in excess of $600 million through its agreements with the OCC and CFPB as well as through settlement of a related consumer class-action lawsuit and will pay over $1 billion in civil penalties to the federal government. 

Additionally, under an order from the Federal Reserve, the bank is required to strengthen its corporate governance and controls, and is currently restricted from exceeding its total asset size.

Affected Nebraska consumers seeking more information on the Wells Fargo redress review program referenced above may contact the Nebraska Department of Justice’s Consumer Protection Bureau by visiting www.protectthegoodlife.nebraska.gov or by calling (800) 727-6432. 

Click here to view the States’ agreement with Wells Fargo. https://bit.ly/2ERT1Fm